Coastal Horizons CEO accuses commissioner of offering $50M from hospital sale for silence

It all started over who would manage the new substance abuse treatment facility known as The Healing Place and what treatment method would be used for patients.

President and CEO of Coastal Horizons Margaret Weller-Stargell says  New Hanover County commissioner Julia Olsen-Boseman offered them $50 million to stop talking about it.

“My end goal is for the truth to be known, the truth to be known that, yes, Coastal Horizons was used in this process,” Weller-Stargell said.

She said this process started in 2019.

“We were approached back in 2019 when the county and Trillium Health resources made the decision to go to city council to request a special use permit, so that they could build a treatment facility on Medical Center Drive,” Weller-Stargell said.

Weller-Stargell says at that time, Coastal Horizons was presented to city council as the intended operator.

“So the special use permit was approved and I’m confident that it was approved in part because Coastal Horizons was presented as the intended operator,” Weller-Stargell said.

Then, Weller-Stargell says they were asked to go visit The Healing Place in Louisville, Kentucky to see its model.

“At that time, we spoke and when I say we, I mean more specifically our clinical director Kenny House spoke very much to the concerns of there not being medication assisted treatment as part of the treatment modalities that would be offered with this facility particularly given the prevalence of opioid use dependency in our community,” Weller- Stargell said.

That is when things started to change.

Weller-Stargell says on May 8th, 2020, she received a phone call from county staff.

“Her call was a courtesy call to let me know the county and Trillium would be proceeding with the Healing Place as the operator, the company based out of Louisville, Kentucky,” Weller-Stargell said.

Weller-Stargell said Coastal Horizons was used in a bait-and-switch.

“I don’t really know what prompted the changes that were made,” Weller-Stargell said. “What I do know is that Coastal Horizons was presented as the intended operator. What I believe is that Coastal Horizons was put forward as the intended operator, because we have a history here as a good treatment provider and we have been a good treatment provider in New Hanover County for 52 years now, so it would certainly be easier to get that special use permit approved with a local provider with a great reputation than to bring in an unknown entity from a different state and get that approval passed.”

Then, Weller-Stargell says on July 1, 2020, she met with commissioner Julia Olsen-Boseman and then commissioner Patricia Kusek.

“That was when it was first stated to me, Coastal Horizons would be given or could be given $50 million from the proceeds from the sale of the hospital and build our own facility that would allow for other treatment models,” Weller-Stargell said.

She says it was intended to be a trade for silence.

“The offer was made: You take the $50 million and build and do what you want, but we need you to stop making an issue of The Healing Place going forward,” Weller-Stargell said.

That is why Weller-Stargell called a second meeting with Coastal Horizon’s board of trustees chair at the time Andy Jones.

“At that meeting, commissioner Olsen-Boseman reiterated her offer for the $50 million hospital proceeds set aside or which were to be set aside for mental health treatment services,” Jones said. “She offered that again to Coastal Horizons in that meeting.”

Jones and Weller-Stargell say there was no deal.

“We were surprised,” Jones said. “Our position was not for sale. It did not appear appropriate to us and it does not appear appropriate to me still to this day.”

“We’ve continued to make an issue of it,” Weller-Stargell said. “Yes. I’ve been very vocal, very candid about my concern with how the process has been peppered with issues because it’s lacked integrity. It’s lacked honesty and it’s lacked complete transparency,” Weller-Stargell said.

Part of the problem is that the vote to sell New Hanover Regional Medical Center had not even taken place yet. Weller-Stargell said this meeting happened in July of 2020. The vote to sell the hospital happened in October of 2020.

The other problem Weller-Stargell noted is the amount that was being offered.

“I don’t know how you can offer us $50 million because what we’re hearing is that there is a total of $50 million that’s going to be allocated for behavioral health services in New Hanover County, so what does that do for other providers in this community that believe that they should have the benefit of applying for those funds as well?” Weller-Stargell said.

The other problem that is now coming to light is the use of medication assisted treatment or MAT.

“Coastal Horizons told you and Trillium two years ago that you needed to allow medication assisted treatment to be part of the treatment options and you denied it and refused it and now you’re required to do it,” Weller-Stargell said.

In a letter Weller-Stargell sent to county manager Chris Coudriet on August 25, she points out that the Healing Place will now allow MAT.

“Not to my surprise, but certainly very much to the surprise of our VP of Clinical Services, Kenny House, (who had previously been adamant in his position that MAT should be included in the array of services given the prevalence of OUD in our community), we were advised by Brian and Maurice that the Healing Place will in fact allow those receiving MAT to be residents of this treatment facility,” Weller-Stargell said. “I assume this will include residents who receive take home doses of medications as well. We were further advised the Healing Place will administer an injectable medication for treating substance use disorders, though this is a peer run, abstinence based facility. When asked about other medications like psychotropic medications, we were advised these medications will too be permitted. Yet, this facility will still be a peer run, abstinence based facility? Coastal Horizons was ousted because of our position on MAT, yet this facility will now open and allow MAT?”

That letter is also the reason this conversation is now coming to light after more than two years.

“I’ve talked about this for the last two years and no time have I been silent about it. What I think is different for people and perhaps difficult to understand is that I’ve had these communications all along. The communication that went out to county manager Chris Coudriet last week copied both the county commissioners and the city council members and in doing so, it goes on a public server and you the media have access to it and so that’s how it became public,” Weller-Stargell said.

WWAY has since obtained that letter Weller-Stargell sent the county manager on August 25 and the responses.

Commissioner Olsen-Boseman responded and said quote, “That isn’t true Margaret. We never ever said you would receive $50 million. You are lying to everyone.”

Weller-Stargell then responded to that comment.

“I stand by Coastal Horizon’s and the integrity of this organization that has been around for 52 years,” Weller-Stargell said.

Weller-Stargell also said that during these meetings with Olsen-Boseman and Kusek, Olsen-Boseman told her she needed to take the money and put it in a way that’s, that’s structured in a way that is in perpetuity for Coastal Horizons.  Weller Stargell says Olsen-Boseman told her “we need for you to do this, so we can get the boys off our back.”

We asked Weller-Stargell who she was talking about.

“Well, she was talking about the commissioners at the time that would be voting on The Healing Place,” Weller-Stargell said.

The only commissioner who voted no on The Healing Place was commissioner Jonathan Barfield.

“Commissioner Barfield never waivered on his position,” Weller-Stargell said. “When he was made aware that Coastal Horizons was going to be the intended operator, he believed that we were the qualified provider to go forward.

We also reached out to county manager Chris Coudriet about the $50 million offer.

“I had been informed of these allegations by Ms. Margaret Weller-Stargell but there was never any evidence shared with me to confirm that something like that occurred, there were never conversations that county staff was a part of around giving money directly to Coastal Horizons, and neither commissioner referenced by Ms. Weller-Stargell has ever suggested or implied to me or any other staff member that such a promise was ever made. Any decision to provide funding to another entity would have to be thoroughly vetted, discussed, and then approved by the Board of Commissioners,” Coudriet said.

Coudriet also offered another statement in response to WWAY’s request for information.

“New Hanover County is supportive of all our providers of mental health and substance use treatment in the area, including Coastal Horizons and the healing place. And we are supportive of Trillium, as the state-appointed local management entity/managed care organization for mental health, developmental disability and substance use disorders, that is charged with identifying the gaps in services, building a network of providers in the area, and ensuring the needed services are provided to the community. Trillium understands the mental health and substance use needs of our county and our region, and we are grateful to Coastal Horizons, the Healing Place, and others who are, or will be, offering those important services. We understand that there is no one way or one method of treatment that is right for everyone, so having different options and services to help our residents is imperative. We look forward to the opening of services at the healing place in early 2023 and the county remains committed to doing all we can to further the mental health and substance use disorder services and treatments for our residents,” Coudriet said.

We also reached out to commissioner Julia-Olsen Boseman and Patricia Kusek for interviews.

Olsen-Boseman responded and said, “I’m hiring an attorney so I will not be making any other public statements.”

We have not heard back from Kusek yet.

District attorney Ben David’s office responded and said, “The news story regarding the latest revelations about Ms. Boseman was forwarded to the prosecutor at the conference of district attorneys who is handling this matter. Due to the close working relationship our office has with the County Commissioners an outside prosecutor was assigned. Our office won’t be able to make comment at this time.”

Weller-Stargell also wanted to make it clear that this is about more than just the $50 million offer.

“I don’t want us to get lost on the $50 million, because the issues were severe before that offer was even made,” Weller-Stargell said. “This is just a continuation of how horrific this process has been and what truly in the end has been a disservice to this community.”